Robust auto sales as customers rush for tax relief

KUALA LUMPUR: Strong gross sales figures in 1Q22 are pointing toward even greater sales in the subsequent quarter as clients check out to conquer the expiry of the product sales and assistance tax exemption in June 30, 2022.

“The solid 1Q22 total field quantity (TIV)suggests a potentially much better 2Q22 to arrive, as orders keep on being robust, with shoppers dashing to take edge of the tax relief, and as vehicle makers proceed to ramp up manufacturing to fulfill desire,” mentioned RHB Exploration in a take note.

Data unveiled by the Malaysian Automotive Association (MAA) showed full marketplace quantity of 159,752 units in 1Q, which manufactured up 30% of the exploration firm’s earlier entire-year estimate.

“1Q22 sales volume throughout significant marques rose from 1Q21, where a sequence of motion constraints impacted auto gross sales,” claimed RHB.

Sales in March hit a month to month record high with Perodua product sales growing 54% thirty day period-on-month (m-o-m) and Proton attaining 35% m-o-m.

Amongst the non-nationwide marques, Honda’s product sales climbed 75% m-o-m and Mazda posted a 357% m-o-m product sales surge, likely owing to adequate CBU orders from Japan and Thailand amid the chips and offer scarcity.

The investigate firm lifted its TIV assumption to 580,000 from 540,000 on the back of the 1Q outcome.

On the other hand, it observed that sales in 2H2022 are still expected to be smooth even with the increased annual forecast.

“Manage ‘neutral’ on the sector, as lingering issues of 2H22 margin stress and 2023 excise obligation reform could weigh on sector sentiment.

“We favour MBM Assets for its sector-main FY22F 7% yield,” mentioned RHB.